Alexander Roytenberg, CPA’s Post

In 2024, knowing your cash flow inside out is vital for CFOs. Maintaining a healthy cash balance remains a top priority. But how can your organization achieve a state where cash inflows exceed outflows? Here are three strategies to help you navigate the current landscape: 📈 Embrace Direct Method Cash Flow Forecasting Traditional methods may fall short when you need real-time visibility. The direct method allows you to monitor all cash sources and uses throughout the quarter. By closely managing receivables and scrutinizing payments, you can obtain an up-to-date picture of your company's cash movements. 💸 Promote Cash Flow Literacy Across the Organization While finance teams focus on cash flow, it's crucial to raise awareness across the organization. Educate employees on cash flow; I discuss it regularly in Tesorio’s company All Hands. Every action and decision can impact cash flow, making it a collective responsibility. ⚡️ Optimize the DSO-to-DPO Ratio Track your DSO and DPO and analyze the ratio between them. If you're paying out cash faster than bringing it in, flip the ratio to a positive state. Prioritize vendor payments, leverage AR automation solutions, and personalize dunning campaigns to improve collections. What strategies are you implementing to unlock free cash flow in your organization? Share in the comments below👇 #cashflow #CFO #CashFlowForecasting

Our most read blog of 2023: 7 benefits of cash flow forecasting 1️⃣ anticipate cash shortages 2️⃣ obtain financing 3️⃣ predict periods of excess cash 4️⃣ identify customer issues 5️⃣ identify supplier issues 6️⃣ predict seasonality 7️⃣ address 'what ifs' Accurate cash flow forecasting is critical to any business. So, if you are thinking about how you can give your business the visibility needed to use cash effectively in 2024 - catch up on our blog or get in touch with Ryan Alderson to find out more. Read the blog > https://lnkd.in/ed45kV_S #RunYourBusinessSmarter #Accountants #2024planning

I’ve been working on a few Cashflow forecasts for clients recently. A question I often get asked is “What can be done to improve it?” 🤔 One thing I look at is their credit control process, is it consistent? Is there someone in the business with responsibility for it? ❓ I check how often sales invoices are raised, has a set day been allocated to this? The works been done - get the cash in your bank. 💷 Analyse the overheads, start with the monthly direct debits are all these still needed? 🤷♀️ Invest in your numbers, work with advisors who can help build your cashflow- look forward, spot what’s coming and plan 📈 If you are struggling with your cashflow, take action now, the earlier plans are made, there’s a better chance of turning things round. 🙌 #empoweredbycloud #constructionaccountants #cashflow

Types of cashflow Cash Flows From Operations (CFO)
CFO shows the cash flows from the production and sale of goods from regular business activities. It indicates whether a company can cover its bills and operating expenses. CFO is calculated by subtracting cash-paid operating expenses from cash received from sales. It reflects the company's ability to sustain and grow operations without needing external financing. Cash Flows From Investing (CFI) CFI reports the cash generated or spent on investment-related activities over a specific period. This includes purchasing or selling speculative assets and securities. Negative CFI may result from substantial investments in the company, such as R&D, and is not necessarily a sign of financial trouble but rather a long-term growth strategy.
 Cash Flows From Financing (CFF) CFF displays net cash flows used for funding activities, such as issuing debt, equity, and paying dividends. It provides insights into a company's financial strength and how effectively its capital structure is managed. CFF helps investors understand how a company finances its operations and whether it relies on external funding or generated capital. . . . #cashflow #financemanagement

We are really feeling a cash crunch. As our packaging costs continue to rise, and our receivables climb... we need to start looking at reasonable financing options. Sounds so strange to say, but our success is becoming a big issue. "Nice problem to have." - literally everyone I mention this to. But seriously, is there a reasonable solution or do I have to refinance my house? Line of Credit? PO financing? Has anyone ever used that "Get Paid Now" button inside of Apex? I'm assuming that's just Factoring, correct? Happy to pay a fractional CFO to help us free up cash.

Are you finding it harder to forecast cash within your organization? We highlight 4 reasons why and hear from 4 cash management and treasury leaders on how they are overcoming the current challenges of cash forecasting. Read here --> https://lnkd.in/eYS9eDiB Want to receive the latest articles straight to your inbox? Subscribe Here - https://lnkd.in/e5uP_DFb #cashmanagement #treasury #cashforecasting

Legacy treasury tools get the job done... for the most part. But what are you missing out on? Did you know that you can start using some API-powered treasury tools immediately? In just a matter of a week or two? Now THAT is true time-to-value. Read more here: https://lnkd.in/eER6S5KB #treasury #treasurymanagement #cashmanagement #corporatefinance #financeandaccounting #CFO #payments #corporatetreasury

Don't overcomplicate things! Keeping things as simple as feasible will serve you better in the long run. I once had a client who had set up multiple bank accounts, designating them for different purposes. Sounds like a solid plan for allocating funds, right? When I came on as their CFO, I could see right away how much this was creating MORE problems for them rather than good. ALL money, for 4 different companies, came into one bank account. All expenses came OUT of at least 8 different bank accounts and NO ONE was managing the cash flow. Instead of helping them manage their money better, it made for constant, almost daily emergency fund transfers to avoid going negative, which often still happened anyway. So I created a cash flow forecast that was updated daily and guess what? THEY NEVER WENT NEGATIVE AGAIN. They never had to move funds with a sense of urgency (unless the owner made a big purchase that I wasn't aware of - but that's a whole different post!) Processes and strategies should move you in a favorable direction and make the daily workload of you and your employees more efficient and less of a headache. Don't be a sheep and do something because so-and-so does it. Do it because it makes sense for you! If you need help managing your funds, DM me "Cash Flow!" ... If you like my content follow #cfojamie #fractionalcfo #fcfo #financialclarity #financials #accounting #processes #efficiency #automation #operations #inventory #reconciliations #cpg #dtc #retail #ecommerce

We know cash management, it's what we've done for the past 14 years. As an industry-trusted partner, we want to make managing your excess funds easy. Questions on how ADM can benefit your organization? Download our FAQ pdf at the link below. Then set up a time to talk to one of our cash management specialists. FAQ download: https://loom.ly/S_X_xjc #cashmanagement #deposits #interestrates

#business #sme #banks #nbfcs #entrepreneur #need #funding #capital 9894041648 To convert negative #workingcapital into positive working capital, follow these steps: 1. Identify the causes: Analyze the reasons for negative working capital, such as inefficient accounts receivable management, excessive inventory levels, or inadequate cash flow. 2. Optimize accounts receivable: - Implement efficient invoicing and collection processes. - Offer discounts for early payments. - Consider factoring or invoice discounting. 3. Manage inventory levels: - Conduct regular inventory audits. - Implement just-in-time inventory management. - Consider inventory financing options. 4. Improve cash flow forecasting: - Enhance financial planning and budgeting. - Monitor cash inflows and outflows closely. - Consider cash flow forecasting tools. 5. Reduce accounts payable: - Negotiate extended payment terms with suppliers. - Consider supply chain financing options. 6. Increase short-term borrowings: - Explore short-term loan options. - Consider asset-based lending. 7. Monitor and adjust: - Regularly review working capital performance. - Adjust strategies as needed to maintain positive working capital. Remember, converting negative working capital to positive requires careful analysis, strategic planning, and effective implementation.